Court Orders Louisiana Forex Trader to Pay $9.2 Million Penalty Over Ponzi-Like Scheme

Published Nov. 3, 2026. Case statuses are current as of that date.

Foreign currency trading, or forex, is a favorite pitch for investment fraud: the market is huge, it trades around the clock, and outsiders have a hard time checking what's really happening with their money. A federal court in Louisiana has now found that a Louisiana man and his companies used that pitch to take more than $3 million from participants.

The U.S. District Court for the Eastern District of Louisiana entered a default judgment against Michael B. DePetrillo and his companies Meteor LLC and NOLA FX Capital Management LLC, the Commodity Futures Trading Commission announced on Oct. 21, 2026 [1]. In a related criminal case, DePetrillo pleaded guilty and was sentenced to nine years in prison in July 2025.

How the scheme worked, according to the court

A default judgment is entered when defendants do not defend a lawsuit. In entering it, the court made the following findings, as described by the CFTC [1]:

1. The pitch. The defendants falsely represented that participant funds would be used to trade retail forex.
2. The profit claims. They made material misrepresentations and omissions about how profitable forex trading with them was.
3. The fake statements. They issued false account statements to conceal their misconduct.
4. Where the money went. They misappropriated participant funds by:
   • making payments to existing participants "in a manner akin to a Ponzi scheme,"
   • paying DePetrillo's personal expenses, and
   • trading in DePetrillo's personal account.

In total, the court found the defendants fraudulently solicited and misappropriated more than $3 million from participants.

What the court ordered

• Civil penalty: $9,211,492.
• Injunction: A permanent ban on further violations of the Commodity Exchange Act and CFTC regulations, as charged.
• Bans: Permanent trading and registration bans.

The judgment resolves all claims in the CFTC's 2024 complaint [1].

The criminal case

According to the CFTC, DePetrillo pleaded guilty on Feb. 18, 2025, in a related criminal case to violating the Commodity Exchange Act in connection with the same conduct. On July 23, 2025, the court sentenced him to nine years in prison and ordered him to pay $6,748,412 in restitution [1].

The CFTC thanked the U.S. Attorney's Office for the Eastern District of Louisiana and the FBI New Orleans Division for their assistance. No other individual defendants are named in the CFTC's announcement.

Why forex pools are risky

Retail forex is legal, but people and firms who manage other people's money in forex generally must be registered with the CFTC and be members of the National Futures Association. Fraudsters often skip registration and rely on account statements they generate themselves. When those statements look good, investors keep money in and recruit friends — which is how Ponzi-style payouts can keep a scheme going.

Red flags

These are general warning signs of forex and trading frauds. They are not findings about any person named here.

• Consistent high returns with few or no losing months.
• Statements produced only by the manager rather than by an independent, regulated broker where you can log in yourself.
• The manager isn't registered with the CFTC or a member of the NFA.
• Withdrawals that come from new investors' money — often signaled by delays, excuses or pressure to "roll over" profits.
• Your money goes to the manager's own account rather than an account in your name.

What to do if you're targeted

1. Check registration on the NFA's BASIC system and at the CFTC's cftc.gov/check.
2. Read the CFTC's forex fraud advisory at cftc.gov.
3. Insist on an account in your own name at a regulated futures commission merchant or retail foreign exchange dealer.
4. Report suspected fraud to the CFTC at cftc.gov/complaint and to the FBI at ic3.gov.

Case status (as of Nov. 3, 2026)

Defendant	Court / agency	Status as of Nov. 3, 2026	Source
Michael B. DePetrillo	CFTC civil case, E.D. La.	Default judgment entered (announced Oct. 21, 2026): $9,211,492 civil penalty, permanent injunction, permanent trading and registration bans	[1]
Michael B. DePetrillo	Related criminal case	Pleaded guilty Feb. 18, 2025, to violating the Commodity Exchange Act; sentenced July 23, 2025, to 9 years in prison and $6,748,412 restitution	[1]
Meteor LLC	CFTC civil case, E.D. La.	Default judgment; subject to the same penalty, injunction and bans as ordered against the defendants	[1]
NOLA FX Capital Management LLC	CFTC civil case, E.D. La.	Default judgment; subject to the same penalty, injunction and bans as ordered against the defendants	[1]

Sources

1. Commodity Futures Trading Commission, "CFTC Secures Court Order Directing Louisiana Man and His Companies to Pay Over $9 Million in Forex Fraud," Release No. 9313-26, Oct. 21, 2026. https://www.cftc.gov/PressRoom/PressReleases/9313-26

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